MP Materials Corp. (MP) stock traded at $45.42 on December 9, with a gain of 2.85%. The announcement of the development of a factory in the United States and the supply of magnets for electric vehicles by General Motors gave MP Materials a boost.
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The first entirely American Rare Earth Magnet (NdFeB) Magnet Plant will be built in Texas by MP Materials. It will not rely on third-party suppliers; instead, raw materials will be sourced from a California mine. The factory will make strong and small magnets for electric and hybrid automobiles.
The MP Materials factory has a significant manufacturing capacity of up to 1000 tonnes of magnets. This is enough to outfit 500,000 electric vehicles with batteries. MP Materials has previously inked a supply agreement with General Motors, but the deal’s volume and value have not yet been revealed.
MP Materials is establishing a significant manufacturing asset that will help boost sales and profitability while reducing reliance on Chinese imports. MP Materials intends to develop more alloy workshops in the future to enhance the ratio of American components in the final product.
MP Materials can eventually attain long-term profit growth rates of above 60%.
Rare earth magnets are an important part of the electric vehicle’s powertrain. They enable electric motors to be smaller and lighter while maintaining the same power and torque.
Magnets improve the efficiency of induction motors in current electric vehicles and also allow energy recovery while braking or going downhill.
Magnet demand is expected to rise in the future decades, and Ffin.ru already identified chances for MP Materials to expand in this sector.
The MP stock has a market value of $8.56 billion. MP is up 73.82 percent over the last year and 3.27 percent over the last week in terms of performance. Over the last month, the stock’s price index has risen 6.77 percent, and over the last three months, it has risen 33.16 percent. In the last six months, it has returned 41.85 percent.